Indonesian Political, Business & Finance News

Industry Minister Requests Additional Rp 1.59 Trillion Budget for 2027

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Industry Minister Agus Gumiwang Kartasasmita has proposed an additional budget of Rp 1.59 trillion to House Commission VII. The request aims to augment the Ministry of Industry’s indicative ceiling for 2027. “To strengthen the implementation of priority programmes that have a direct impact on increasing productivity, improving competitiveness, downstreaming programmes, strengthening small and medium industries, human resource development, and national industrial transformation,” Agus Gumiwang said during a working meeting with House Commission VII at the parliamentary complex in Jakarta on Wednesday, 10 June 2026. The indicative ceiling for the Ministry of Industry in 2027 stands at Rp 2.01 trillion, compared to Rp 2.11 trillion in 2026. If approved by the House, the total budget ceiling would become Rp 3.60 trillion. The detailed breakdown of the indicative ceiling, proposed additional funds, and the total budget proposal from each unit within the Ministry of Industry is as follows: 1. Secretariat General: Rp 226,369,309,000 (indicative ceiling), Rp 144,407,457,000 (additional proposal), Rp 370,776,766,000 (total proposed budget ceiling). 2. Directorate General of Agro Industry: Rp 51,986,748,000 (indicative ceiling), Rp 131,650,000,000 (additional proposal), Rp 183,636,748,000 (total proposed budget ceiling). 3. Directorate General of Chemical, Pharmaceutical, and Textile Industry: Rp 59,652,890,000 (indicative ceiling), Rp 148,950,000,000 (additional proposal), Rp 208,602,890,000 (total proposed budget ceiling). 4. Directorate General of Metal, Machinery, Transportation Equipment, and Electronics Industry: Rp 62,902,779,000 (indicative ceiling), Rp 116,364,098,000 (additional proposal), Rp 179,266,877,000 (total proposed budget ceiling). 5. Directorate General of Small, Medium, and Miscellaneous Industries: Rp 119,958,014,000 (indicative ceiling), Rp 477,763,222,000 (additional proposal), Rp 597,721,236,000 (total proposed budget ceiling). 6. Inspectorate General: Rp 35,040,251,000 (indicative ceiling), Rp 9,831,991,000 (additional proposal), Rp 44,872,242,000 (total proposed budget ceiling). 7. Agency for Industrial Standardisation and Policy Services: Rp 713,162,121,000 (indicative ceiling), Rp 215,878,600,000 (additional proposal), Rp 929,040,721,000 (total proposed budget ceiling). 8. Directorate General of Resilience, Territory, and International Industrial Access: Rp 54,306,644,000 (indicative ceiling), Rp 65,365,689,000 (additional proposal), Rp 119,672,333,000 (total proposed budget ceiling). 9. Agency for Industrial Human Resource Development: Rp 690,255,631,000 (indicative ceiling), Rp 282,405,902,000 (additional proposal), Rp 972,661,533,000 (total proposed budget ceiling). The main activities proposed are: 1. Restructuring of Industrial Machinery/Equipment: Targeting 256 industries, with a budget of Rp 202.78 billion. 2. Procurement of Testing Equipment to Support SNI Implementation and Industrial Downstreaming: Targeting 145 units, with a budget of Rp 162.55 billion. 3. Natural Resource-Based Downstreaming and Priority Industry Development: Targeting 182 industries/policies, with a budget of Rp 138.69 billion. 4. Facilitation of SMEs in Product Development, Product Standards, Market Access, and others: Targeting 7,472 SMEs, with a budget of Rp 136.62 billion. 5. Restarting Small Industries for Post-Disaster Management: Targeting 254 small industries, with a budget of Rp 120.51 billion. 6. Fostering New SME Entrepreneurs: Targeting 2,730 new entrepreneurs, with a budget of Rp 78 billion. 7. Building Renovations and Procurement of Vocational Education Facilities: Targeting 18 units/packages, with a budget of Rp 71.49 billion. 8. Implementation of Higher and Secondary Vocational Education: Targeting 11,597 people, with a budget of Rp 71.06 billion. 9. Industrial Vocational Training: Targeting 9,400 people, with a budget of Rp 63 billion. 10. Development of an Industrial Information System: Targeting 1 unit, with a budget of Rp 55.95 billion. Meanwhile, the indicative ceiling for the Ministry of Industry for 2027 is Rp 2,013,634,387, with the following types of expenditure and funding sources: Expenditure types: 1. Personnel Expenditure: Rp 1,119.31 billion (55.59 percent). 2. Operational: Rp 354.41 billion (17.60 percent). 3. Non-Operational: Rp 539.91 billion (26.81 percent). 4. National Priorities: Rp 208.08 billion. 5. Regular: Rp 297.12 billion. 6. Sovereign Sharia Securities: Rp 34.70 billion. Funding Sources: 1. Pure Rupiah: Rp 1,583.70 billion. 2. Non-Tax State Revenue: Rp 79.54 billion. 3. Public Service Agencies: Rp 315.69 billion. 4. Sovereign Sharia Securities: Rp 34.70 billion.

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